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Find the present value of the system

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To examine the implications of selecting various discount rates, reconsider the water filtration system example in the text but change the dis- count rate from 10 percent to 5 percent.

a. Find the present value of the system.

b. Now compare this present value with the one calculated under the assumption of a 10 per- cent rate. Explain the difference intuitively.

Reference no: EM13914595

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